Armistice Resources Corp. - Project Update

    Issued and Outstanding common shares: 46,615,898

    TORONTO, Sept. 21 /CNW/ - Armistice Resources Corp. (TSX: AZ)
("Armistice" or the "Corporation") is pleased to provide an update on the
status and progress of the work being undertaken at its McGarry Gold Project
at Virginiatown, Ontario.

    Based on the recommendations in the NI 43-101 report filed in June 2004,
Armistice has undertaken a three component evaluation programme of the gold
mineralization identified at the McGarry Project. The components are:

    1.  Bulk sampling of gold zones identified by previous diamond drilling
        on the 2250 and 2350 Levels.
    2.  Definition diamond drilling from the 2250 ft level to fill in gaps
        left from previous drill programmes in 1989 and 1996 to 1998.
    3.  Deep drilling to identify and confirm potential gold ore zones at
        about 3700 ft below surface.

    Bulk Sampling

    The key element in the evaluation programme is bulk sampling of identified
gold zones. The objectives of the programme are:

    1.  Correlate diamond drill results with face and wall chip sampling
        within the zones.
    2.  Correlate the results of drill and chip sampling with continuous cuts
        of the crushed material on a round-by-round basis.
    3.  Correlate the sampling results with metallurgical recoveries.
    4.  Establish parameters for an eventual mining method.
    5.  Provide the confidence in the nature of the mineralization to permit
        an eventual decision to deepen the shaft from its current depth of
        2300 ft.

    The underground workings and mining plant have now been rehabilitated to
permit commencement of mining operations. The objective of this mining is to
obtain bulk samples from previously identified gold zones on the 2250 and 2350
Levels. An access cross-cut is being collared to reach the 260N, 325N and 400N
Zones in the western part of the previously established 2250 Level. Another
cross-cut at 00W is also being collared to provide both bulk sample material
and drill access for vertical holes to test an identified zone of green
carbonate (at the adjacent Kerr Addison Mine, green carbonate ore was
notoriously difficult to evaluate by cross cutting drill holes because the
gold mineralization was associated with near horizontal features).
    A decline to the 2350 Level is planned to permit bulk sampling on at
least two levels, sampling by raising, and potential test mining between the
two levels in the future.
    Strathcona Mineral Services has been engaged to provide advice on
establishing appropriate sampling protocols.
    Once the mineralized zones are reached by mining, each round will be
hoisted to surface individually. A portable crusher will be set up on surface
for continuous sampling of each round. Finally, the composite bulk sample will
be custom milled in one or more large batches at an established mill in the

    Definition Drilling

    A programme of drilling 7-hole fans at 100 ft spacings along the 2250
Level was mostly completed in the 1990's, however gaps were left within the
planned fans and between sections. The results of this definition drilling are
used to direct bulk sampling programmes and to help determine an optimal drill
pattern for future ore identification in other parts of the property. The
section fans effectively test an area about 200 ft above and below the 2250
    Five new holes have been drilled on Section 700W to complete the standard
7-hole fan. Drilling of three holes on Section 600W is in progress to complete
the standard drill fan on this section. The results of this drilling on
Section 700W has confirmed the continuation of the 100N Zone in all 7 holes. 
This Zone was the target of bulk sampling in 1996 but, since the material
mined was mixed with other bulk sampling material, a metallurgical gold grade
for the 100N Zone itself was not obtained. The best intersections in the 2007
holes are 0.09 oz per ton gold over 8.4 ft (8.3 ft estimated true width) at
about the 2195 elevation; 0.14 oz per ton gold over 6.5 ft (5.5 ft estimated
true width) at about the 2145 elevation; and 0.26 oz per ton gold over 6.0 ft
(4.5 ft estimated true width) at about the 2110 elevation. The 100N Zone was
not included in the resource estimates set out in the NI 43-101 of 2004 and is
not the object of any currently planned bulk sampling.
    Gold bearing zones were also intersected to the north on Section 700W
which may be easterly extensions of the 325N or 400N Zones which are planned
to be tested by bulk sampling 700 ft to the west. The best intersection was
0.24 oz per ton gold over 4.0 ft (which is estimated to be close to the true
width) at about the 2090 elevation.
    Assay results for the drilling on Section 600W have not been received

    Deep Drilling

    It is Armistice's objective to maintain a balance of definition drilling
and deep drilling aimed at expanding the potential of the deposit.  There is a
general shortage of both drill rigs and trained drillers in the industry at
the moment. As a result, there is only one underground rig available to
Armistice now - a second drill rig and crew continues to be sought.
    By the last week of September, drilling will shifted to the "Deep
Drilling" phase for at least a three hole programme from the south cross-cut
on the 600W Section of the 2250 Level. Establishing this cross-cut for more
efficient testing at depth was the last mining project undertaken in the late
1990's - no holes have previously been drilled from this platform which is
550 ft south of the 2250 main drift.
    Each of the three holes will be about 2500 ft long and test the extent of
previously identified mineralized intersections between Sections 300W and 700W
at depths of about 3700 ft below surface.
    Following completion of these 3 deep holes, an evaluation of whether to
resume definition drilling or to drill other deep holes will be made.

    Closure Plan Filed with MNDM

    The Corporation has received confirmation that the Closure Plan submitted
to the Ministry of Northern Development and Mines ("MNDM") has been accepted
and filed. A closure plan for advanced exploration projects is mandated by the
Mining Act of Ontario. As outlined in Part VII, section 145 of the Act, the
closure plan was accompanied by a financial assurance in the amount of
$410,400. The closure plan was prepared by N.A.R. Environmental Consultants
    The work described above has been planned and supervised by Erik
Andersen, P.Eng., qualified person. The drill programme employs a QA/QC
procedure consistent with NI 43-101 and industry best practices. The drill
core is split and half-core samples sent to Swastika Laboratories Ltd.,
Swastika, Ontario for standard fire assaying. Armistice submits duplicates and
blanks at least every 10 samples. When sufficient samples have been
accumulated, approximately 5% of sample rejects and/or pulps will be sent to a
second laboratory for check assaying.
    The NI 43-101 Report of June 2004 can be downloaded via the Sedar link on
Armistice's Web Site (filed under "Other" June 17, 2004 (7.37 Mb) on the Sedar

    This news release has been reviewed by Armistice's Vice President and COO
and qualified person, Erik Andersen, PEng.


SOURCES CORP. "Todd J. Morgan" Todd J. Morgan President, CEO and Chairman of the Board

For further information:

For further information: Todd J. Morgan, (705) 567-4567,

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